Average earnings.

consider what is included in the concept of average earnings, what it is and how to calculate.

procedure for calculating the average wage is regulated by the Labour Code (st.139).The average wage is calculated by multiplying the daily average earnings in the calculation period for the number of days that must be paid.Or by multiplying the average hourly earnings for the number of working hours (according to the schedule) payable period.

When is the average salary?Calculating it requires the provision of training to the employee or another paid holiday, determining the amount of severance pay or compensation for unused vacation days, when sending a business trip or for payroll, which persists at the time of employment.

In addition, the calculation of it is done in all cases where an employee does not directly participate in the working process for legitimate reasons.These are cases of production downtime due to circumstances beyond the employee reasons, transferring him to another (lower-paid) position on a need or medical condition (for example, pregnant women or with children up to 3 years).This includes times when employees are scheduled medical check-up or upgrade their skills to the job, as a donor gave blood.

billing period is the last 12 months (calendar) preceding the onset of the event, which is required for the calculation of average earnings.This period may be different (in terms of the collective agreement or another act of a local organization), if it does not infringe upon the right to work.Average earnings are calculated by dividing the accrued salary for time worked (hours or days) and completely and not spent at full billing period.

Do all kinds of payments are taken into account when calculating the average wage?According to the Labour Code, taking into account all the payments as wages (salaries of employees at the time-based form of payment, the actual monthly wages when piecework wage or a percentage of sales, bonuses and rewards, royalties, as well as allowances and additional payments (forthe harmful nature of the work, the combination of professions, etc.)

not be accepted for the calculation of all kinds of social benefits, ie. e. not related to wages. These are the following: financial assistance, compensation of food, transportation or treatment, as well as trainingor rest.

Average earnings in the vacation is calculated as follows. If the preceding 12 months (billing period) worked entirely (which is quite rare), the sum of the actual salary for that time, divided by 12, and then to 29.4 (current ratio).The calculated average daily wage multiplied by the number of days due (calendar) holiday, so we know the amount of the accrued vacation.

More often, the settlement period is worked out not all (the employee was ill, was on a business trip and so on. D.).Then, the average daily wage is considered by dividing the accrued payments for periods spent at the actual time (in calendar days).

If you want to calculate the average hourly earnings, the calculation is similar.Payroll divided by the number of working hours during the billing period.To calculate the average cost of selling the resulting hour is multiplied by the number of working hours for the holiday period, based on the work schedule.

If an increase of the employee's salary, the average salary is indexed.Indexation factor is calculated by dividing the salary of the new over the old.If the increase occurs in the billing period of the indexed earnings from its beginning to improve.If the increase occurs at the end of the billing period, but before the actual onset of vacation, then multiplied by the average earnings of full indexation.In the case of wage increases during the holidays only need indexing part, attributable to the period after the increase.